Micron Technology (MU) CEO on How Tough Price Negotiations by Customers Contributed to Memory Shortage

Micron Technology, Inc. (NASDAQ:MU) is one of the 15 Best Stocks to Buy for the Second Half of 2026.

On June 30, CNBC reported that Micron Technology, Inc. (NASDAQ:MU) CEO Sanjay Mehrotra said aggressive customer pricing pressure helped create today’s memory shortage by leaving the industry underinvested before AI demand increased.

Mehrotra said, “Certain customers drove pricing significantly down in our industry.” He noted memory prices fell to one-third of prior levels in 2023. He also commented, “Companies were losing money. They couldn’t afford it,” arguing the downturn limited manufacturers’ ability to expand capacity.

Mehrotra said Micron Technology, Inc. (NASDAQ:MU) keeps on investing despite cutting fiscal 2023 capital spending to $7.7 billion from $12.1 billion a year earlier. He expects a tight memory supply to carry on beyond 2027 because new semiconductor fabs require years to build, and advanced memory has become more complex to produce.

To address demand, Mehrotra said the semiconductor firm plans to invest about $200 billion in manufacturing and research, with its Boise facility expected to produce its first chips by mid-2027.

Micron Technology, Inc. (NASDAQ:MU) provides innovative memory and storage solutions. It operates in the Compute and Networking Business Unit, Mobile Business Unit, Embedded Business Unit, and Storage Business Unit segments.

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